Sale today; Euro affect on US expected to be mild.

Rates are slightly up on the opening on the two news items in the header. Yesterday, Bernanke said in testimony at a House Budget Committee hearing that the impact of the European debt crisis on U.S. growth is “likely to be modest” if financial markets “continue to stabilize”. This “positive-US” news worked to raise rates slightly. Secondly, we are in the middle of a $70 billion bond...

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Still with downward trend.

News is largely what it was: The European zone continues to experience challenges, the latest being a Fitch discussion of downgrade to UK. It is largely believed that Greece will sooner or later default, and the whole sustainability of the Euro is somewhat believed to be limited. On the domestic front, the US economic signs are not as “hot” as were first portrayed: We’re still...

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Sideways to down

Bias is still toward “flight to quality” as things are still very shaky in the Euro zone. In addition, China’s economic reports are coming out pointing to an economic slowdown in that country. Our own reports are showing increasing positive economic news, one item of which is factory orders, which have gone up now ten months straight. All of this moves sentiment (and money)...

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Stable on news. 3.31%

Rates are stable on news. European news includes a downgrade on Spain’s credit ratings from Fitch Ratings, from AAA, which said the country’s debt burden is likely to weigh on economic growth. The ratings were cut one step to AA+. Domestically, news points to the reality that, although recovering, the economy is still in slow recovery. Treasury yields are expected to remain low “this...

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Stable after opening higher.

Stable after opening higher.

Interest rates saw a slight rise overnight, but are likely stable in this (as of post) 3.32% range. The European concerns have calmed a little bit; helped by an announcement from China that the Greece situation has not changed their plans for long term diversification into European Assets (read, my beloved Volvo brand, for one.) So the flow to US bonds has ebbed a bit. Moreover, weighing down...

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Lower; but technicals are overbought.

The bond market is markedly higher (interest rates lower) on continuing expectation out of Europe. Spain, widely believed to be the next country under Greek-like distress, has taken over one of it’s non-performing banks. Now, this is isolated, and not systemic; but the fact remains that there are real lingering questions in the investment community as to whether the European assistance...

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3.21% is our range.

Interest rates have continued to fall, and have stabilized around this current 3.21% range — which is also the “technical” number. The continuing market mover is the European situation; and although confidence returns that Greece will stabilize its situation (as well as other currently-distresses nations) the investor sentiment still prevails with concern that the allowed...

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